The month of February proved to be highly positive even there were no big gains in the market. Improved investor sentiment and higher trading volumes were the features of the month and Bitcoin also had the first monthly gain in the last six months.
The daily volume continues to hover between the $25-30 billion and the total market cap is at $127 billion.
The past week was also made a few headlines with Ethereum and TRON hard forks, which now will help them to improve their ecosystem and offerings. Overall the sentiment of the market is positive but small coins or project continues to face issues.
Here is the technical analysis of the top 5 cryptocurrencies:
Consolidation in Bitcoin continued through the last week as it mostly hovered just around the $3,800 level and also the 50 Day EMA underneath is offering strong support to the market. The market is experiencing pressure from the top with the $3,800 level offering strong resistance which extends up to the $4,000 level. The market is likely to continue to consolidate in a narrow range and if it breaches the 50 Day EMA or $3700 level, then the next major support is at $3,500 and $3,300 level.
Ethereum had the much debated Constantinople hard fork last week after months of delay which is likely to provide an edge over other networks. But, coming to the price action part, Ethereum in the last few session is losing momentum and has breached the $130 level which also coincides with the 50 Days EMA. The $120 level underneath should offer support, and if it breaches, then it could break down to the $100 level.
Ripple in the last week has pulled back from the $0.3375 level, reaching down to the $0.3110 level. I think the market will continue to lose momentum and is likely to reach down to the $0.30 level or $0.2890 level, before showing signs of strength. And, in the short to medium term, Ripple will continue to consolidate between the $0.2890 and $0.31820 level.
After going sideways for the whole last week, EOS now is showing extreme weakness and has lost over 5 per cent of its value in the last 24 hours. I think the 61.8% in Fibonacci Retracement will offer support which also coincides with the 50 Day EMA slope. Looking at the chart, 38.2% in Fibonacci retracement ($3.61) is offering a strong resistance and until it crosses above, it will continue to struggle around.
Litecoin pulled back after facing strong resistance at the $48 level. The pair has shown strength in the past week, gaining almost 12 per cent but lost momentum reaching towards the $48 level. The $43 level underneath should offer support and if it breaches, then it can reach down towards the $40 level. Also, the 50 Day underneath will also provide support to the market.
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